Representations of the Ripple, Bitcoin, Etherum and Litecoin virtual currencies are seen on a motherboard in this illustration picture. Photo: Reuters.

Coinbase is now valued at $8 billion

By Reuters Oct 31, 2018

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INTERNATIONAL – Coinbase, one of the top US cryptocurrency exchanges, said on Tuesday it raised another $300 million in a funding round led by Tiger Global Management, valuing the firm at more than $8 billion (R116 bn).

San Francisco-based Coinbase was one of the top beneficiaries of the bitcoin boom last year after the cryptocurrency rocketed more than 1,300 percent to almost $20,000.

The value of bitcoin has plummeted since and is down nearly 55 percent this year, undermined by increased regulatory scrutiny in the wake of volatile price swings.

Coinbase booked revenue of $1 billion in 2017 and is expected to bring in $1.3 billion this year despite the slump in bitcoin, according to media reports.

The firm said Combinator Continuity, Wellington Management, Andreessen Horowitz and Polychain also invested in the latest round.

The company, which also counts New York Stock Exchange owner Intercontinental Exchange as investors, said it will use the financing to expand its operations globally and offer more crypto assets, among other things.